Angelean Monteiro

The avg. 30-yr fixed rate recently reached the mid-6% range, its highest level in 9 mo, pushing relief expectations later for borrowers.
Many originators had expected five-handle rates by year-end, but current market conditions now make meaningful relief for buyers more likely in 2027.
Demand has not stopped: a national housing index recently showed pending sales improved MoM and yearly, beating analyst expectations amid slower overall activity.
Borrowers have adjusted to mid-to-high-6% rates better than during earlier spikes, but near-7% math can limit qualifying power and desired home choices today.
Three consecutive months of pending-sales growth point to resilience, with buyers still considering purchases and professionals watching for future rate opportunities ahead.

US Mortgage Relief Shifts Toward 2027

During the week ended May 15, the 30-yr contract mortgage rate moved into the mid-6%, its highest level in almost 2 mo.
Home-purchase applications ↓~4% in that same period, signaling rate-sensitive buyers were adjusting as home-financing costs moved higher nationwide during the current spring market.
Refinancing activity eased only slightly, suggesting existing homeowners were also watching rates closely rather than making broad financing moves in the current market.
The 10-yr Treasury yield recently pushed home-financing expectations higher as energy-price pressures from the Middle East conflict fed inflation concerns among markets.
Spring housing still showed momentum as Early-Q2 contract signings on previously owned homes reached a 5-mo high, preserving cautious optimism despite rates.